Fubon earnings rise as markets stabilize

By Crystal Hsu / Staff reporter

Fubon Financial Holding Co (富邦金控), Taiwan’s second-largest financial service provider by assets, earned NT$2.84 billion (US$96.59 million) in net income last month, a significant rise from the NT$2.25 billion it earned in August, as financial markets stabilized somewhat, the company said in a stock filing yesterday.

The improvement came even though the conglomerate had to set aside NT$650 million in provision to compensate for a possible earnings shortfall at affiliated Taiwan Sports Lottery Corp (運彩科技), the filing said.

Fubon Life Insurance Co (富邦人壽) generated the bulk of earnings, NT$2.27 billion, last month, compared with a meager NT$700 million in August, as foreign currency exchange losses eased, company data showed.

Net profits at Fubon Financial totaled NT$12.12 billion in the third quarter, almost tripling earnings in the second quarter, thanks to cash dividends sized at NT$8.46 billion this year, company data showed.

Cumulative net income amounted to NT$23.08 billion for the first nine months, or NT$2.43 earnings per share (EPS), according to the filing.

Fubon Financial has been mum on reported plans to acquire a majority share in First Sino Bank (華一銀行) to accelerate its expansion in China after its chairman Daniel Tsai (蔡明忠) was seen paying a visit to the Financial Supervisory Commission last week.

Local media said Tsai sought to clarify whether the company’s share acquisition bid falls in line with cross-strait investment rules since China caps foreign stakes in Chinese lenders at 20 percent.

Many suspect that the lender is not subject to the restriction because foreign investors own a majority stake in First Sino. Fubon Financial reportedly plans to make the acquisition via its Hong Kong subsidiary

Separately, state-run Mega Financial Holding Co (兆豐金控) posted NT$1.59 billion in net income last month, raising cumulative profits to NT$17.78 billion, or EPS of NT$1.55, the company said in a stock filing.